A dental clinic missed five years of filings during an EMR transition. We filed under the VDP and secured a full waiver of $50,000 in penalties.
A chaotic switch to a new EMR billing system left a dental clinic without T2 and payroll filings for five years, facing imminent CRA enforcement. We reconciled 60 months of billing journals, submitted a formal Voluntary Disclosures Program application, and secured a full waiver of about $50,000 in penalties, restoring the clinic's compliance.
Health services are largely GST/HST-exempt, which blocks input tax credits on overhead and makes professional corporation rules the main planning lever.
The VDP can waive gross-negligence penalties and part of the interest on unreported income or unfiled returns — but only while the disclosure is genuinely voluntary.
Why it bites: The window closes the moment the CRA makes contact about the issue. Acting before that letter arrives is worth real money.
A CCPC files its T2 within six months of year-end, with the balance due two months after (three where the small business deduction is claimed). The 9% federal small business rate applies to the first $500,000 of active business income.
Why it bites: The filing and payment deadlines differ, and interest runs from the payment date. Filing on time while paying late still costs money.
Employers withhold CPP, EI and income tax and remit on a schedule set by their average monthly withholding. Late remittance carries a penalty of 3% to 10%, rising to 20% for a repeat failure with gross negligence in the same year.
Why it bites: Payroll penalties compound quietly. An employer that drifts one cycle late each quarter can owe more in penalties than in the tax it was late paying.
The late-filing penalty is 5% of the balance owing plus 1% for each full month late, to a maximum of twelve months. A second late filing within three years doubles both figures.
Why it bites: The penalty is calculated on the balance owing, so a late return with nothing owing costs nothing — which is why filing on time matters even when you cannot pay.
Every engagement above was priced as a fixed fee agreed before the work started, and paid only once the client had reviewed the result. If any of this looks like your situation, the first step is a free 15-minute call — we will tell you plainly whether there is anything worth doing.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe a real engagement; outcomes depend on your own facts. Client details are omitted for confidentiality.
